Human Capital in UK Universities: Challenges and

Opportunities

Jon F Baldwin, Registrar, University of Warwick

Dr Adrian Graves, Registrar and Secretary, University of Salford

University of Warwick: Basic Facts

• 41 years old• 16,175 students• 4,871 staff• £311m turnover in 2005/06• 31% of turnover is commercial income

– Catering, Management Training Centres etc

• Ranked 5th in UK in 2001 RAE for research quality

The University of Warwick is positioned as …• Top 10 UK University• Research intensive• High quality teaching and learning• ‘Entrepreneurial University’• Interdisciplinary / Innovative• Independent• Self-governed

The University of Warwick’s challenge is to be in the top 50 universities in the world

University of SalfordBasic Facts• Founded 1862

• Royal Institute of Technology 1907

• University 1967

• Major mergers 1997

• 19000 students

• 2500 staff

• E220M turnover

The Future

• Currently middle ranking

• Aims to top 40 in 10 years

• Major Change Process– Constitution– Academic Leadership– University Administration– Business Planning

The Higher Education sector in the UK is diverse• Post 92 / Pre 92• 168 institutions• Various alignments• Research intensive• Focus on teaching• Differences in affordability of HEIs• Attractive to overseas students• Positioning in league tables• Differentiation in self-generated funds and spin outs

The strategic outcome for universities is to achieve …

• Excellence in research• High quality teaching• Outstanding student experience• Regional engagement• Global recognition• Financial stability• Attraction and retention of the best people

The typical HR process still applies for all institutions

• Attract

• Recruit

• Induct

• Perform

• Develop

• Reward

• Retain

HR policies and practices have historically been behind the private sector

• Different pay spines

• Job evaluation processes

• Rudimentary approaches to development

• Administrative bureaucracy

The Higher Education Funding Council for England have recognised that HR practices need modernising

• National Framework Agreement– Pay structures– Flexibility for institutions– Pay progression– Attraction and retention (market supplements)– Working hours

Significant progress but only part of the story so far

Framework Agreement has brought many benefits

• Common pay spine

• Single job evaluation process

• Performance management systems

• Removal of demarcation

• Harmonised terms and conditions

• Common policies

Further areas for development

• Embed career development• Realise benefits of annual review• Greater understanding of how people

contribute• Further develop meaningful merit processes• Provide support and enable people to deliver

top quality research• Attract and recruit the best people

Recruiting & Retaining First-Class Academics & Leaders

• International market• Importance of brand awareness and

reputation• Demographic changes• National vs local wage negotiations?• Framework agreement

Challenges• Pace of change and innovation• Ensuring HR policies are ahead of change to provide

support• Differentiation from other similar institutions• How to fully engage with all staff• How to create a collective vision in a disparate community• Pay expectations• National Pay Bargaining• How to develop better relationships with Trade Unions• One size doesn’t fit all – diverse sector• Further development of brands

Summary• The sector is diverse – one size doesn’t fit all• HR practices have historically been behind the

private sector• Pace of change and increasing competitiveness has

brought need for modernisation and differentiation into sharp relief

• Progress has been made – Framework Agreement• Key challenges are now to embed and develop

Framework Agreement• Likely that each HEI uses HR policy as one of the key

differentiators to attract and retain staff